Pew’s Payday Lending in America series sheds light on the experience of borrowers. The research also details fundamental problems with payday loans, and suggests how policymakers can help solve these problems.
The Consumer Financial Protection Bureau (CFPB) has issued a proposed framework for regulating payday and auto title loans, the first step toward precedent-setting federal rule- making to address the most harmful aspects of high-cost, small-dollar loans.
12 million Americans take out payday loans every year, but there are still misconceptions about how they are actually used. Follow the story of Jennifer, a typical payday loan customer, who takes out a cash advance on her paycheck to make ends meet, but ends up paying more than $500 in fees.
When Dodd-Frank created the Consumer Financial Protection Bureau (CFPB) in 2010, it gave the agency authority to regulate high-cost, small-dollar loans, including payday loans. This is important because unaffordable payments and excessive costs have caused difficulties for the millions of borrowers across the U.S. who utilize these types of loans.